the investor has every right and expectation to expect a profit for undertaking the effort and bringing their expertise to the situation.
If the property is the seller’s primary residence, debt forgiveness income will not be considered taxable income up to the amount of the purchase money mortgage.
Like I’ve said before, so many lawyers (and other real estate professionals) simply DON’T UNDERSTAND Short Sales, so their knee-jerk reaction is to advise against them, even when the Short Sale would save the homeowner from a disastrous foreclosure.
Teaching Short Sale investors how to structure their transactions in a 100% ethical and legal way is something I do at my Breakthtrough live events.
It’s not uncommon that I hear of an investor or homeowner who receives advice from their lawyer not to do a short sale.
